Customer experience (CX) is one of the hottest topics in the world of entrepreneurship right now. Everyone wants to offer the best customer experience, from big tech players to small businesses. In a competitive ecosystem, providing the best experience is not enough.
You must also derive meaningful insights to make your business relevant, valuable, and useful for the end consumer. In this blog, we will share a few ways you can use customer experience insights to improve your business.
What are CX insights?
Has a website’s clunky UI stopped you from checking out and buying a product? Imagine if the website owner had a live chatbot that facilitated the purchase and allowed you to share feedback. That feedback would be a customer experience insight for the business owner.
Customer Experience (CX) metrics are gathered based on customers’ interactions and experiences with a company, its products, services or digital assets. These insights often reveal how customers feel about the product/service and help identify opportunities for improvement.
CX insights are gathered using customer feedback, market research surveys, interviews, social media, customer reviews, and support interactions. Customer insights can also be derived from various sources, such as purchase history, customer demographics, market research, social media interactions, and more.
Customer experience insights are used to form a comprehensive view of the customer’s perceptions and opinions. They also shed light on various aspects of the customer experience, such as customer satisfaction, loyalty, customer journey pain points, and overall customer sentiment.
Read More: 6 ways to gain customer insights
Using CX insights in business.
Customer experience insights help understand the perception of customers based on their real-world experience with your business. Naturally, such first-hand accounts can be quite useful for market research, product development and a load of other use cases. Here are the best ways to use customer experience insights for your business.
Customer experience insights for product improvements.
Customer experience insights gained from analyzing customer feedback and interactions provide valuable information about how customers perceive and interact with your products. These insights help businesses identify areas for improvement, uncover pain points, and guide the development of enhanced product offerings. Specifically, you can use the insights for:
- Identifying specific areas where customers encounter challenges or frustrations.
- Understanding customer preferences, desires, and expectations for product features and functionalities.
- Pinpointing opportunities for innovation and enhancements based on customer feedback.
- Prioritizing product improvements to address the most impactful areas identified through insights.
Nike uses customer experience insights extensively to improve its product offerings. They utilize various apps like the SNKRS app, Nike app, Nike training club, and Nike Run club to gather customer data. This data is used to improve customer experience through unique and personalized offerings, rewards, and loyalty programs.
Increase satisfaction scores using CX insights.
Customer insights enable businesses to identify what’s stopping customers from being delighted with the product. Analysis of customer experience insights helps businesses improve satisfaction scores while using a product or dealing with customer support, specifically to:
- Identify areas of dissatisfaction throughout the product journey and plug the gaps.
- Understand customer sentiments, emotions, and expectations while using a product or service.
- Discover the points in the customer journey where improvements can be made to fill the need gap.
Udemy improves the performance of its machine learning-based auto-captioning feature by analyzing customer experience insights. They analyze engagement rates and send customer satisfaction or rating surveys to understand if improvements are needed and increase customer satisfaction scores over time.
Find and target new markets.
Customer experience insights enable businesses to understand different customer segments’ unique needs, preferences, and pain points. This helps with market penetration, targeted market expansion, and even finding new segments in the existing market. Here’s how to use customer experience insights:
- Segment and analyze customer data to understand the characteristics and preferences of different customer groups.
- Identify emerging trends, shifts in customer preferences, and unmet needs in specific market segments by analyzing CX data.
- Develop personalized marketing strategies and messaging to reach and engage new target markets effectively.
- Identify potential market opportunities for new products or services that cater to a specific market segment or need.
Udemy used CX insights based on engagement data of its marketing campaigns to discover popular marketing channels in different markets and countries. These insights helped them refine their marketing strategy and effectiveness by reallocating funds to platforms and regions with maximum conversions. They were also able to align their marketing based on regional preferences.
Improve marketing effectiveness.
Customer experience insights from surveys, feedback or interactions help in optimizing marketing strategies. You can understand where your customers are most engaged, evaluate your communication effectiveness/engagement, and identify the most impactful marketing channels, as Udemy did. CX insights can specifically help in the following:
- Understanding customer engagement rates, interests, and behaviors to create more personalized marketing campaigns.
- Testing and optimizing messaging, visuals, and calls-to-action based on customer response data.
- Identifying the most effective marketing channels and touchpoints to allocate resources effectively.
For example, Zalando captures consumer experience (CX) data through its Marketing Services platform. Businesses can access these data insights for 17+ European markets to decide when, how much and which platform to spend their marketing budget on.
A fashion retailer can use insights like a positive engagement on an email offering personalized recommendations and offers to create more personalized campaigns based on shopping history, preferences and browsing behavior. This will improve engagement, click-through rates, and marketing ROI.
Boost conversion rates.
Customer experience insights can be used to optimize sales funnels, train sales reps, and build highly-targeted automated flows to increase conversion rates. Understand customer behaviors, preferences, and pain points based on their interactions and use the insights to:
- Identify barriers or friction points in the customer journey that hinder conversion.
- Understand customer motivations, needs, and triggers that promote decision-making.
- Optimize the sales process based on customer preferences and insights gathered.
- Personalize offers, messaging, and sales enablement content to align with customer interests and preferences.
- Conduct A/B testing to refine sales strategies and optimize conversion rates.
For example, HootSuite started capturing CX insights on the website. This revealed that around 65% of their website visitors wanted more information before deciding. They revamped their landing pages to provide more detailed information and better nurture the prospects, increasing their conversion rates by up to 16%.
Also Read: How to increase conversion rates in sales?
More ways to use customer experience insights.
The following are more ways to use CX insights:
- Beating competition. Highlighting USPs most valued by customers during their interaction in marketing campaigns. For example, after analyzing positive customer feedback, a ride-sharing company highlighted quick response time and clean cabs.
- Reducing churn rates. Redesigning platform UI to reduce friction and confusion in customers’ minds to increase loyalty and retention. For example, a streaming service improves its recommendation engine by adding personalization based on a user’s viewing history.
- Boosting loyalty. Adding customer experience touchpoints based on a hospitality chain’s positive reviews or social media posts. For example, handwritten notes and personalized welcomes on the property increase user-generated content that promotes positive word-of-mouth and loyalty.
- Achieving product-market fit. CX insights promote continuous discovery, which leads to an increase in the pace of achieving product market fit. For example, a tech company prioritizes features most demanded by its existing customer base by building a customer-driven product roadmap.
Keep an eye on customer experience insights with Gapscout.
Your customer doesn’t just share their experience with you. They post about it on their blog, social media, share their opinion with friends, and on the review platform. Gapscout helps you monitor their opinions and reviews by scanning online platforms for the latest reviews. It tracks online sentiment and gives you in-depth insights into what your customers are thinking and how they perceive your brand,
So, start using Gapscout to monitor customer reviews and gather CX insights on autopilot now.
Ready to Automate Your Market Research?
Get exclusive access to GapScout prior to release!